China announces 30 PPP projects

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China announces 30 PPP projects The Chinese Ministry of Finance (MOF) announced the release of thrity public private partnership (PPP) projects on 4 December 2014.

The announcement comes after the State Council released investment and financing guidelines that emphasized the importance of PPP in mobilizing private capital.

Both domestic and foreign investors will be allowed to take part in the construction and operation of these projects.

According to sources, the projects include sewer systems, water and heat supplies, garbage disposal, medical care, sports and facilities, and other infrastructures in urban areas.

The total investment amount for these projects is estimated at Rmb180 billion (US$29.3 billion).

The PPP tool has been used in China since the 1980s, though public money and debt securities issued by the government have been the main channel of finance infrastructure. However, as the increased scale of investment required exceeds the limits of public money available, the PPP tool is set to become an important source for financing infrastructure in the country.

Sun Jie, MOF finance researcher , stated:

"PPP will help broaden financing channels for urbanization and cut local government spending."

During this year China has awarded a considerable number of PPP projects, most of them in the waste and wastewater sector:

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